Third party logistics provider Lloyd Fraser Holdings has bounced back from a pre-tax loss to report a significant profit despite a fall in turnover. In the year to August 31, 2006, the company posted a pre-tax profit of £2.1m, up from a pre-tax loss of £2.2m in 2005.
Turnover dipped to £82.3m in 2006 from £85.1m in 2005, but operating profit leaped to £1.9m from a loss of £2.2m in 2005. Gross profit increased to £9.7m in 2006 from £9.0m
the previous year.
The 2005 pre-tax loss took account of administrative expenses of £1.9m, marked as exceptional items. Business development manager Mike Dennis says that the group suffered in 2005 after it extended credit for two clients that subsequently went into receivership. Lloyd Fraser has recovered after a tightening of credit control, "refocusing the existing business and just taking it on the chin," he says.
Lloyd Fraser is optimistic for the forthcoming year. "The initial forecasts for ongoing profitability are also encouraging," says joint managing director Philip Bincliffe.
The group ended the 2006 financial year with "healthy cash reserves and no debt," adds the director's report.
Average staff numbers dropped to 1,413 in 2006 from 1,521, with a drop of 85 warehouse and transport employees. Payroll costs dipped to £36.7m from £38.5m, while directors' emoluments rose to £706,011 from £587,923. No dividend was recommended for 2006.
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